Cloth mama's-- let's talk about rashes

Little man has a rash on his inner thigh that seems like chafing. It's always been a problem, and when he was 2 months it got a secondary yeast infection and I had to keep him in disposables for 2 months while we treated it.

It looks like a strip of dry, chapped skin. We use prefolds and it's right where the folded edge of the prefold touches his skin. Or, I guess it could be the elastic on the cover.

Have your kiddos gotten rashes in cloth? If yes OR no, what types of diapers do you use? Did you make a change?